TY  - JOUR
AU  - Neumark,David
AU  - Schweitzer,Mark
AU  - Wascher,William
TI  - The Effects of Minimum Wages Throughout the Wage Distribution
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7519
PY  - 2000
Y2  - February 2000
UR  - http://www.nber.org/papers/w7519
L1  - http://www.nber.org/papers/w7519.pdf
N1  - Author contact info:
David Neumark
Department of Economics
University of California at Irvine
3151 Social Science Plaza
Irvine, CA  92697
Tel: 949-824-8496
Fax: 949/824-2182
E-Mail: dneumark@uci.edu

Mark Schweitzer
Federal Reserve Bank of Cleveland
Research Department
P.O. Box 6387
Cleveland, OH  44101-1387
Tel: 216-579-2014
Fax: 216-579-3050
E-Mail: Mark.Schweitzer@clev.frb.org

William Wascher
Federal Reserve Board
Stop 66
Washington, DC 20551
Tel: 202/452-2812
Fax: 202/452-5296
E-Mail: william.l.wascher@frb.gov
AB  - This paper provides evidence on a wide set of margins along which labor markets can adjust in response to increases in the minimum wage, including wages, hours, employment, and ultimately labor income, representing the central margins of adjustment that impact the economic well-being of workers potentially affected by minimum wage increases.  The evidence indicates that workers initially earning near the minimum wage are adversely affected by minimum wage increases, while, not surprisingly, higher-wage workers are little affected.  Although wages of low-wage workers increase , their hours and employment decline, and the combined effect of these changes is a decline in earned income. We also delve into the political economy of minimum wages, attempting to understand the vigorous support of labor unions for minimum wage increases.  Using the same empirical framework, we find that relatively low-wage union members gain at the expense of the lowest-wage nonunion workers when minimum wages increase.
ER  -